Question 33 (15 points) Travel Zees stock is currently trading at $53 per share on the Australian Stock Exchange. The company recently declared a dividend of $2 per share which was paid yesterday. Jenny Favoury, the Financial Controller of the company, announced that Travel Zees expects dividend to grow at 20% per annum for the next three (3) years. Thereafter, the expected growth rate of dividends is expected to fall to 6% per annum and will sustain thereafter. Benjamin Lewis, your colleague, owns 2000 travel Zees shares and wants to sell them because he believes the stock is currently overvalued. Assume that travel Zees has a beta of 1.2. Also assume a risk free rate of 6% and the market risk premium of 5%. 1. Using discounted cash flow (DCF) analysis, estimate the value of the company based on the information provided by the Financial Controller. (5 marks) 2. Based on your estimated value, would you advise Benjamin Lewis to sell? Why? Why not? (5 marks) 3. Provide an alternative Equity Pricing model and calculate the value of the company